Investors scrambled for the
riskiest tranches in one of the busiest weeks in the
asset-backed bond market when over US$9bn was raised by deals
that pooled everything from subprime auto and consumer loans to
shipping container leases.
The scramble for yield and diversity was clear: some of the
most subordinated bonds were multiple times covered, esoteric
trades were upsized and some issuers locked in their lowest
spreads yet.
“The subscription levels on subordinated tranches is
definitely very noteworthy,” Jay Steiner, co-head of US ABS at
Deutsche Bank, told IFR.
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